UK retail sales rise less than expected in December

High street sales growth accelerated in the year to December, according to the Confederation of British Industry’s latest monthly Distributive Trades Survey.

However, growth was a little weaker than expected, with the retail sales balance rising to +19 from +7 the previous month, compared with estimates of +21.

In addition, the survey found growth in retail sales volumes is expected to slow somewhat in January.

Growth in orders placed upon suppliers recovered in the twelve months to December, after falling in the previous month, but is expected to be flat in the year to January.

Barry Williams, CBI Distributive Trades chairman and Asda’s chief customer officer, said: “It’s no surprise sales have recovered as we head into the final shopping days of the Christmas season.

“It would be ideal if the industry could keep that momentum into the New Year but retailers know 2015 was tough, and they’re expecting 2016 to start in much the same vein. Nevertheless, retailers are helping to make the pound in customers’ pockets go further, and low fuel prices should give an additional boost to consumer spending through the New Year.”